As part of the acquisition agreement, Theta Corp. agrees to pay the former shareholders of Iota Corp. $3 in cash for every dollar of gross revenues above $35,000,000 reported by Iota at the end of the first year following acquisition. Theta projects the following outcomes for the year:

Gross revenues	Probability
$30,000,000	0.10
$35,000,000	0.40
$40,000,000	0.30
$45,000,000	0.15
$50,000,000	0.05

Required: Using a 13 percent discount rate, what is the appropriate value to be reported as an earnings contingency liability on Theta’s books at the date of acquisition?